Tisco adjusts for stability amid FIDF issue
Tisco Financial Group has adjusted its business strategies for 2012 to sustain profit based on the assumption that it will have to contribute more premiums to the central bank as part of the government's plan to pay off the Financial Institutions Develop
Group chief executive officer Oranuch Apisaksirikul said yesterday that the possibility of higher premiums had caused the group to adjust its banking-business strategy by restructuring its funding portfolio, efficiency and cost controls, as well as prioritising cross-selling, to offset the expected higher costs.
The bank plans to reduce its issuance of bills of exchange and switch to deposit products and long-term debentures to offset the cost increase and extend its deposit base.
In a bid to ease costs, the group will increase deposits from individual customers in the provinces by expanding the network of Tisco Bank branches in the provinces to drive cross-selling of products, Oranuch said.
“We plan to offer savings insurance and health insurance as well as deposit products to attract individual customers in the provinces,” she added.
What’s more, the group will strengthen its long-term relationships with partners in the hire-purchase, brokerage and asset-management businesses.
Loans this year are expected to expand by 10-15 per cent, most of them to small and medium-sized enterprises and corporations, rather than retail customers.
For the brokerage business this year, the group will expand overseas through its partner Deutsche Bank Group.
Paiboon Nalinthrangkurn, CEO of Tisco Securities, said the company would position itself as a premium brokerage house with no rebates on brokerage fees, and would offer wider research services to foreign customers as well as local ones who want to expand their businesses abroad.
Tisco Securities this year will transform from a business platform centred on private clients to a multi-market, multi-products specialist business model to serve capital-market liberalisation expected under the Asean Economic Community.
“We will provide trading services in more than one market; we have made proposals to regulators at the Hong Kong, Singapore and Malay-sian stock markets. We expect to service trading for customers in the Hong Kong and Singapore markets next month,” he said.
Indonesia and the Philippines are the next countries into which Tisco will move as part of its plan to implement the linkage of Asean bourses.
